Cash in hand ‘morally wrong’ - Money - News - Moneyfacts


Cash in hand ‘morally wrong’

Cash in hand ‘morally wrong’

Category: Money

Updated: 24/07/2012
First Published: 24/07/2012

This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

Many of us pay tradesmen in cash for odd jobs around the house and garden; however, such practice has been dubbed 'morally wrong'.

Tradesmen who avoid paying VAT and income tax cost the government an estimated £2 billion a year. According to the Treasury minister David Gauke, those who pay in cash are 'morally wrong' and are encouraging tradesmen to dodge tax payments.

His comments follow the Government's latest initiative to crack down on 'aggressive' tax avoidance schemes.

"When a tradesman says, 'Here's a 10%, a 20% discount on your bill if you pay me cash in hand' that is facilitating the hidden economy. That's as big a problem in terms of loss to the Exchequer as tax avoidance. Revenue is not being paid as it should be paid," said Mr Gauke.

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